Last week, things looked bleak for equity investors. As the Dow Jones and S&P 500 slid to historic lows, and the TED spread soared to a historic high (more on that below), it looked to many like the thing to do was pull out of stocks entirely, and enter safer assets like gold, T-bills, and steady bank savings accounts. But on Monday, the market bounced, led by the news that the U.S. government will invest up to $250 billion to shore up the U.S. banking system in a plan similar to measures taken by several European powers, including Germany and the U.K.
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Looking for the End of the Financial Crisis? Watch the TED Spread
(The Wikinvest Daily Angle, 10/13/08)
Wolfgang Munchau: Europe Needs a Bank Rescue Plan
(naked capitalism, 10/6/08)
Calls to Congressmen Running in Favor of Bailout Bill
(naked capitalism, 9/30/08)
